After fighting a pitched battle for marketshare in the branded detergents sector, India?s largest FMCG companies?Hindustan Unilever Ltd (HUL) and Procter & Gamble (P&G) India?will soon slug it out in the Rs 2,000-crore skincare segment. In a strategic move, P&G has entered this highly competitive sector by launching its $2-billion Olay brand in India, which will directly compete with HUL?s Pond?s premium skincare products. With the forceful entry of P&G, the premium skincare sector in India will witness a lot of action this year, predict industry analysts.
With the tagline ?Love the skin you are in?, Olay?s mass media ads will be unleashed this week. For starters, P&G will be launching a teaser campaign to announce the launch of Olay in India.
On P&G?s major move, Sumeet Vohra, marketing director, P&G, told FE: ?In August, we will beam our television ads featuring Sushmita Sen. In addition to mass media ads, we are looking at in-store advertising and Internet initiatives. We are setting up ?Olay Wall Units? to offer beauty consultancy in leading malls and shopping centres to gain visibility.? P&G also plans to educate consumers about having a regular skincare regimen, on the Net.
Arch rival HUL is stepping up its in-store advertising plans to promote its Pond?s premium range in malls and departmental stores. ?HUL has tied up with 450 malls and shopping centres in 23 cities across the country to set up Pond?s kiosks. After seeing the response to these kiosks, HUL is sharpening its focus on this initiative,? says an industry source. Sampling seems to be the buzzword for both HUL and P&G.
Last year, HUL launched Pond?s Age Miracle at the top end of the skincare market and extended its range by launching Pond?s White Beauty range this year. Yet another FMCG major, ITC Ltd, also entered the premium skincare sector last year with the launch of Essenza Di Wills skincare products.
Is P&G planning to hike the price of its detergents and hair care brands following the footsteps of its rivals? According to Vohra: ?Our price increases are always in line with inflation. We do not comment on future plans.?